Industry body seeks tax clarification
Industry body seeks tax clarificationRichard Wilson
Intellect has asked the Inland Revenue to clarify its definitions of R&D used for its tax credit scheme.
The industry body, which represents over 1,000 electronics, telecoms and IT firms, is looking for clarification of how engineering R&D and in particular software R&D will qualify for the tax credit. All these changes are important to our industry, said Intellect in a letter to the Inland Revenue.
It is seeking confirmation that hardware and software R&D will be considered equally when calculating tax credits.
We believe these are very important clarifications to ensure the appropriate treatment of engineering R&D/software R&D, said Intellect. We want to make sure that the existence of software prototypes is acknowledged.
It has also called for a general simplification of the way the tax guidelines are presented which its members have criticised for being unhelpful, too complex and too long.
Intellect members have been critical of the complexity and length of the two documents (Guidelines and Commentary) and the need to keep switching between the two documents, said Intellect.
Intellect has discussed the changes with the Inland Revenue, which has indicated that it would take them on board.